London tops tenant deposit league table
Data from the Deposit Protection Services shows tenants renting a new home in London between April and June of this year had to pay on average of £1,799.11 as a deposit when moving in.
This compares with an average deposit of £970.48 paid by tenants elsewhere in England and Wales.
In nearly all cases, tenants will pay their new landlords a deposit against damage or other costs when they move to a new rental property.
Landlords must protect this deposit in one of the three government-backed tenancy deposit schemes – the Deposit Protection Service, the Tenancy Deposit Scheme and mydeposits.
Within 30 days of receiving a deposit, landlords must provide tenants with:
- Address of the rented property
- Deposit paid
- How the deposit is protected
- Name and contact details of the deposit protection scheme and its dispute resolution service
- Landlord or the letting agent’s name and contact details
- Name and contact details of any third party that has paid the deposit
- Why they would keep some or all of the deposit
- How to apply to get the deposit back
- What to do if a tenant cannot get hold of the landlord at the end of the tenancy
- What to do if there is a dispute over the deposit
The requirement to protect a tenancy deposit taken for an assured shorthold tenancy in England and Wales was introduced on 6 April 2007, following its inclusion in the Housing Act 2004. Initially, deposits needed protecting within 14 calendar days of receipt by the landlord. This was changed to 30 days on 6 April 2012 as a result of the Localism Bill 2011.
Landlords who fail to comply with tenancy deposit legislation face two possible sanctions.
- They lose the right to end the tenancy or regain possession of the property under Section 21 of the Housing Act 1998 until the deposit has been repaid or a court case has ended.
- A tenant can apply to a County Court to receive compensation between one and three times the deposit’s value if they think the deposit is not protected or they fail to receive details of the protection scheme their deposit has been lodged with.
Tenant deposits are just one of a landlord’s pain points. To make being a landlord more rewarding, Assetgrove offers you our rent guarantee scheme. We call this the ultimate way to get hassle free letting because it provides you with a guaranteed monthly income for up to five years while we take care of every aspect of managing your property (including handling tenant deposits).
This means Assetgrove will also…
- Guarantee there are no void rental payments
- Make sure the property is occupied within 48 hours – as long as it’s up to scratch
- Deal with all tenant issues directly with the tenant to save you the trouble
- Maintain the property during the term of the contract
- Take care of evictions
- Cover all utility and energy bills
For more information about Assetgrove’s Rent Guarantee Scheme, contact us immediately.